from staff
Michael Freed is managing partner of the Brennan, Manna & Diamond firm in Jacksonville and president-elect of The Jacksonville Bar Association. He spoke last week to the Jacksonville Regional Chamber of Commerce Health Council.
Your topic to the Health Council was “Employer Liberties in Hiring and Health.” What are those liberties, in summary?
The presentation centered on what employers and health insurers can and cannot do under the auspices of “wellness programs.” Those are employer or insurer-sponsored programs designed to improve employee health, lowering insurance costs and increasing productivity. The legal framework in which such programs are tested and operate is complicated and implicates several laws, including the Health Insurance Portability and Accountability Act. This creates both opportunities to install meaningful programs as well as pitfalls and legal exposure. The key is a carefully created plan.
Jacksonville is considered a large medical center. Do health care companies face stricter hiring practices than other employers?
The regulatory framework is, by and large, the same for health care companies. However, given the sensitive records, procedures, and products involved in the business of health care, there is more scrutiny and background checking involved in hiring employees. That type of scrutiny generates more information that can be intelligently used in making a hiring decision, while at the same time generating knowledge that can create legal exposure for potentially unlawful hiring practices.
What are the major employment law issues you see at the moment?
The current economy has resulted in significant layoffs and firings, generating an increase in wrongful termination and post-employment litigation and claims. We are seeing plenty of that. Pension reform is another major issue precipitated by the significant decline in government resources.
Do you see hiring picking up in Northeast Florida?
Companies seem to be gaining greater confidence to hire where they have needs. Many have been hesitating to hire, even where there are definite needs, as a result of uncertainties in the economy. It would appear to be awhile, however, before hiring increases enough to absorb the majority of available employees in meaningful re-employment.
What industries or companies are faring best in the economic recovery, from your point of view?
Litigation – particularly workouts, bankruptcy, foreclosures and debt collection – is thriving as an offshoot of the economy at large. The truth is, many companies are taking the view that “it’s a shame to waste a particularly good crisis” – that is, they are using the economic downturn to get expenses in line, make work force adjustments, keep valuable employees and make strategic hires. Companies and businesses that survive will be stronger and there will be some decrease in competition to boot.